The sugar tax will commence in April 2018 in a similar move the UK took last year, pending State aid approval.

Minister Donohoe announced: "I am introducing a tax at a rate of 30 cent per litre on drinks with over 8 grams of sugar per 100 millilitres and a reduced rate of 20 cent per litre on drinks with between 5 and 8 grams of sugar per 100 millilitres."

Club Orange and 7up manufacturer Britvic Ireland expressed disappointment at the move - and say 75 per cent of their products are already low or no sugar.

Kevin Donnelly, Managing Director Britvic Ireland said: "It is essential that the Department of Finance and Revenue engages with the industry to ensure that Republic of Ireland manufacturers, retailers, wholesalers, publicans and foodservice operators are not disadvantaged versus imported product, especially in an environment of weakening Sterling.

"We look forward to constructive engagement as soon as implementation details become clearer, most likely in the upcoming Finance Bill.

"Given the implementation timeline is less than half that afforded to the industry in the UK, early engagement on this matter is crucial."

Spending on health has been increased by 685 million euro, bringing total funding to almost 15.3 billion euro for 2018, reflecting an almost 5% increase, the minister said.